Nifty trading range has narrowed down, says Ravi Nathani

According to the technical analyst, the near-term trading range on the Nifty is 18,149 - 17,760, close above or below would add trigger in the direction.

Nifty 50

Last close: 17,894.85

Index trading in range bound since the start of this month, the previous range was 18,265 – 17,775, the new range which is now applicable on near-term charts is 18,149 – 17,760, close above or below would add trigger in the direction.

Technical indicators like MACD are still negative, whereas near-term averages are flat this means some directional moves will be expected very soon, therefore traders shall keep a strict watch on the above-mentioned range and take positions accordingly.

Intraday No Trade Zone: 17,850 - 17,950

Expected Intraday Resistance: 18,010 – 18,110 - 18,325

Expected Intraday Support: 17,815 – 17,750 – 17,600

Nifty IT

Last close: 29,264.65

A long fortnight consolidation has been violated on the upper side of the range,  resulting Index has changed its trading pattern from flat to bullish.

Technical indicator MACD has turned positive, six and five days moving averages are sloping upwards resulting uptrend in the near term and 200 EMA is at 29,570.

The best trading strategy for traders would be to accumulate this index and its constituents at the current market price or at dips with a target expected 29,960 and 30,500. The oversold zone for this index will be above 30,900.

Intraday No Trade Zone: 29,165 - 29,375

Expected Intraday Resistance: 29,430 – 29,600 - 30,000

Expected Intraday Support: 29,000 – 28,750 – 28,600

Nifty Financial Services

Last close: 18,506.25

The near-term trend is down on charts whereas trade below 18,350 will add a trigger towards the correction which could also be said as the last hope for bulls and their stop loss.

Trade below 18,350 will bring 18,060 as the same is also the 2nd level of pivot on Daily charts.

The momentum moving average of 200 days is at 18,000, Bollinger bands are sloping downwards and MACD is too placed at the negative zone, therefore the best trading strategy for traders would be to sell below 18,350 whereas trade only above 18,936 will only make bulls stronger than bears.

Intraday No Trade Zone: 18,425 - 18,585

Expected Intraday Resistance: 18,636 – 18,710 - 18,820

Expected Intraday Support: 18,380 – 18,280 – 18,180

(Ravi Nathani is an independent technical analyst. Views expressed are personal).